Daily Economic Roundup – August 4, 2009

United States

The USD, along with the JPY, got trampled over in yesterday’s stampede as investors hiked their risk appetite and moved their money to higher yielding assets. It got floored all throughout the day from the opening bell up to the end. More…

Euro zone

The EUR went for a strong finish yesterday, with the EUR/USD racing past the 1.4400 mark and the EUR/JPY reaching the 137.00 area. Although the German retail sales report was a major disappointment, the EUR mustered the courage to rally on account of risk tolerance among investors. More…

Japan

Once again, the yen got beaned on the head by a stray foul ball, posting losses versus the USD and EUR yesterday. After posting some nice gains versus the USD on Friday, the yen fell and the USDJPY pair jumped right back up, closing the day at 95.33. At the same time, the EURJPY rose and hit a new high, breaking past last week’s high and tested levels near 137.50 before eventually closing 137.39. Will traders have any mercy for the yen this week? More…

United Kingdom

The pound flew up the charts like a Beatles’ single yesterday, posting its third consecutive day of big gains versus the dollar. The pair broke out to set a new yearly high at 1.6987 before closing at 1.6940, its highest close since October last year! More…

Canada

Despite Canadians enjoying their Civic holiday, the USDCAD finally made a convincing new yearly low yesterday as money poured back into the foreign exchange market. The CAD is considered as a comdoll and therefore, it is usually one of the currencies most affected by degrees in risk appetite. If this kind of risk taking in the market continues, more CAD buying is probably in the cards. More…

Australia

Zoom zoom went the AUD yesterday as it made another convincing yearly high for the second trading session in a row! It seems that risk appetite is finally in full bloom, much to the benefit of the high-yielding AUD. Today, the Reserve Bank of Australia will be announcing its interest rate decision so expect a volatile AUD. More…

New Zealand

The Kiwi sang to the tune of Miley Cyrus’ The Climb as it staged a slow but steady “uphill battle” yesterday. Fueled by risk appetite, the NZD/USD moved past the 0.6600 mark and is currently testing the 0.6700 level.More...

Switzerland

The CHF joined the party as it closed positively against the USD and JPY. It, however, fell short versus the other majors. More…

Pipnoculars: What’s on the Economic Horizon

Another Round of Positive Data to Hurt the USD?
RBA’s Interest Rate Decision on the Docket
Economic Reports to Provide More Fuel For the GBP